CAG flags irregular fund release in Maharashtra tribal English-medium schools scheme

Mumbai, Jul 14 (PTI) The Comptroller and Auditor General has flagged irregular release of funds, unauthorised arrears payments and financial irregularities in the implementation of the Maharashtra Tribal Development Department's English-medium residential schools scheme for students. The audit also flagged disbursal of grants to unapproved institutions as a "special case". The CAG report stated that the department spent Rs 1,398.62 crore under the scheme between 2018-19 and 2023-24 but released Rs 24.99 crore to nine ineligible day boarding schools, paid Rs 9.53 crore in arrears to 16 schools after revising their grades without any legal provision or approval of the Secretary-level Committee. It also sanctioned Rs 2.82 crore to three schools that had never received the committee's approval by treating them as a "special case". The findings are part of the CAG's Compliance Audit Reports No. 3 and 4 on Maharashtra, which were tabled in the state legislature last week. The audit found that the department granted additional admissions to 10 schools without approval of the Secretary-level Committee, while six other approved schools received Rs 16.19 crore despite not being included in the relevant Government Resolution (GR). The CAG said the department incurred total expenditure of Rs 1,398.62 crore under the scheme during the six-year period, with annual spending peaking at Rs 324.58 crore in 2022-23. The report said grants worth Rs 24.99 crore were released to nine day boarding schools between 2018-19 and 2022-23 even though the scheme was meant exclusively for residential schools providing boarding and lodging facilities. It said extending benefits to day boarding schools altered the scope of the scheme without any formal modification, leading to overpayments, financial burden and inequity for compliant residential schools. The government admitted that no formal directives recognising day boarding schools under the scheme had been issued but said no such schools were approved in 2023-24. The CAG, however, said the reply was ot acceptable as the approvals and payments violated the scheme guidelines. The audit mentioned that the department revised school gradings without any statutory provision or approval from the Secretary-level Committee and used the revised grades to release arrears of Rs 9.53 crore to 16 schools. The CAG also pointed to serious deficiencies in planning, saying the department fixed an annual target of 25,000 new admissions without conducting surveys or analysing historical data. Actual admissions consistently fell short by between eight and 33 per cent. In another instance, the report said the department stopped admissions to Class II midway through the 2022-23 admission process, depriving 1,902 eligible tribal students of admission. The audit further found that between 81 and 134 schools lacking mandatory infrastructure and academic requirements, including trained English-medium teachers, science laboratories and adequate toilet facilities, were selected under the scheme, compromising the quality of education and student safety. It also criticised repeated administrative delays, noting that Government Resolutions approving schools were issued up to 171 days late, resulting in delayed admissions and loss of teaching time. The report highlighted serious gaps in financial accountability, stating that despite disbursing Rs 1,398.62 crore under the scheme, the department never issued instructions requiring schools to maintain separate accounts or submit utilisation certificates for the grants received. "The absence of any instructions/orders/guidelines requiring schools to submit utilisation certificates poses a high risk of misuse, diversion, or misallocation of funds," the report said. The government informed the federal auditor in May 2025 that instructions would be issued to submit utilisation certificates for previous years and that future grants would not be released without such certificates. While acknowledging the assurance, the CAG said the department must establish a formal framework for submission, verification and monitoring of utilisation certificates. The audit flagged ineffective monitoring by project officers, who failed to submit mandatory quarterly and surprise inspection reports, while authorities did not verify whether uniforms, school bags, stationery and other materials meant for students were actually distributed. The CAG has recommended that the government adopt realistic admission targets, complete school selection before the academic year begins, formalise school grading policies, strengthen financial oversight by making utilisation certificates mandatory, and establish a robust monitoring mechanism to ensure proper implementation of the scheme. PTI ND NSK